One of the most stressful logistical tasks of running your business is organizing your taxes, so it’s essential to stay up to date on the latest IRS rules. Knowing when the IRS starts accepting tax returns will help to ensure that your taxes are filed correctly and completed in a timely manner. With this in mind, it’s important to be aware of when the IRS will start accepting taxes for each year. In this article, we’ll provide you with the necessary information to remain in the know about when the IRS begins to accept taxes, providing you with peace of mind and less stress during the tax season.
1. Planning Ahead: Understanding When Tax Season Begins
From annual statements to deadlines, understanding when tax season begins is an imperative part of successful accounting. Whether you’re an individual, freelancer, or employer, it pays to be prepared.
Check The Calendar: Every tax season officially begins on the first of January. This is when you start receiving tax documents such as W2s and 1099s, or even 1098s. This is when the scramble to file taxes begins.
Prepare For Taxable Income: Find out which sources of income you need to report, and make sure they are all accounted for and documented. This includes everything from employee earnings to investments gains to business or rental income. It’s best to keep track of all your income during the year to make filing easier.
Understand Deadlines & Penalties: Be sure to know the due dates for filing your taxes. U.S. tax returns are due on April 15th, but you can get an extension until mid-October. Keep in mind that the IRS charges penalties for late filing, so play it safe and get your taxes done early.
- Check the calendar for when tax season begins.
- Prepare for taxable income.
- Understand deadlines & penalties.
- Keep good records of your income.
2. IRS Set to Start Accepting 2020 Tax Returns
The wait is over! The Internal Revenue Service (IRS) is set to begin accepting 2020 tax returns on February 12. Given these unprecedented tax filing circumstances, it’s essential for taxpayers to understand what they need to know about the coming tax season.
New Tax Legislation
It’s important to be aware of any updates to the tax laws. For example, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 was signed into law in December 2020. This legislation made several tax law changes, mostly through the CARES Act, including :
- An additional $300 deduction for 2020, regardless of filing status
- Extended filing deadlines through May 2021 for those affected by COVID-19
- RMD waiver for certain retirement plan contributions and distributions
- Changes to the IRS collection process for unpaid taxes
Filing Requirements
As with previous filing seasons, you must meet certain filing requirements this year.
- Individuals must report their income if they earned at least $12,400.
- It’s essential to include all documents and forms that are necessary for filing. Some of these include Form 1099-B, Form W-2, Form 1099-MISC, and Form 1098.
- All taxpayers must provide their Social Security number or Taxpayer Identification Number.
- If you are filing jointly with your spouse, you will both need to be present when submitting your return.
Filing Options
As always, you have a few options when filing your tax return. You can submit your return by mail, use IRS e-file software, or use a registered tax professional or tax preparer. If you use a tax professional or tax preparer, make sure they are authorized to submit returns electronically on your behalf.
3. Key Dates to Know for the Upcoming Tax Season
For this upcoming tax season there are several key dates to keep in mind, from when to file to when to expect refunds. Get organized and have everything ready to go so you can reap the most rewards out of your tax return this year.
January 15: Any ‘C’ and ‘S’ corporations’ tax returns are due by this date in 2020. This is to ensure that all been processed and submitted to the state and federal government by the deadline.
January 31: This is the date that employers need to provide W-2 forms to any withholding employees and 1099 forms to any independent contractors. These documents will be necessary for filing taxes accurately.
- April 15: Most standard filing deadlines land on April 15. For the 2020 tax year, the deadline has been extended as a result of the pandemic, and extends to May 17.
- June 15: IRS allows an additional extension of filing for US citizens who have lived abroad in 2020. This date is the deadline for submissions taken advantage of the extra filing time.
Make sure to get your taxes prepared and organized early in the season so that you don’t miss out on paying the minimum amount of taxes due and enjoying the fruits of your tax return. Remember these important dates next time tax season comes around.
4. A Timeline for E-filing and Paper Tax Returns
- January: Now is the time to start gathering the information and documents you need to begin e-filing (or filing by paper) a tax return. If you need help filing, make sure you contact a professional to get started. Prepare any corrections to earlier returns, such as changing your withholding.
- February: Make sure you have all your documents, such as your W2s, 1099s, and other records relating to income payments. Look out for tax forms that arrive late from employers or financial institutions. Check official IRS websites for any updates that may affect your filing.
- March: Electronically file your returns before the April 15th deadline, or start building out your paper tax documents. If you are filing by paper, consider using the IRS postage-paid envelopes that come with the tax forms, this will save you a trip to the post office.
- April: This is when the hard work is done and you can submit your tax returns. Make sure you double-check for errors and omissions, and double-check that all information is correct and that you have not missed any important tax deductions or credits. If filing electronically, you will receive confirmation from the IRS when your return has been processed.
5. Submission Deadlines You Should Be Aware Of
As a student, missing a submission deadline can plunge your academic career into chaos. Here are five common submissions you should keep an eye on:
1. Assignment Submission
Assignment submission dates are almost always firm, so make sure to read all relevant information carefully when you first receive your instructions. Give yourself plenty of time to plan and research according to deadlines and be aware of any applicable extensions.
2. Exam Entries
The deadline for entering exams tends to come up quickly. Early registration has the benefit of more options for scheduling and giving yourself the best chance at success. Keep an eye out for any fees for late entries or changes, as these can be hefty.
3. Project Proposal
If you have the liberty of selecting your own project topic for a course, likely with faculty approval, you need to factor in enough time to devise your idea, source suitable materials and resources, and draft a proposal before the deadline. Missing this submission can make it difficult or impossible to pursue your desired project.
4. Dissertation or Thesis Drafts
With an undergraduate or postgraduate dissertation, it is common to have multiple drafts sent to supervisors for review before the final version is due. Give yourself plenty of time to make adjustments after feedback and submit the completed work with time to spare.
5. Scholarship Applications
Scholarships are very competitive and the window for applying is often erratic and tight. Make sure you familiarise yourself with the application guidelines, which you’ll need to follow, in advance. This will give you the best chance of success and avoid needless disappointment.
6. Strategies to Effectively Prepare Your Returns
Tax season can be a daunting and often daunting task. To help you prepare your taxes effectively, here are some simple strategies.
1. Organize Your Financial Documents: Start out by gathering the necessary documents you will need to file taxes. This includes receipts, reports, bank statements, and other related information. Once you have all of your financial documents in one place, go through them organized by type. That way, you can keep track of everything and prepare your returns without any surprises.
2. Research the Latest Tax Laws: Making sure you are up to date on the latest tax laws is key to successfully preparing your tax returns. Take time to research the latest updates and regulations to ensure nothing is overlooked. Better yet, consult with a tax professional if you have a lot of questions.
3. Know Your Deductions: What types of deductions can you claim on your taxes? Knowing which deductions you qualify for allows you to save more money. Different deductions require a specific set of criteria so it’s important to have a clear understanding of your deductions and what you need to file them accurately.
4. Double-Check Work: Believe it or not, a small mistake on a tax return can cause delays and hefty fines. To be on the safe side, always double-check all work. This includes math, spelling, and other information that needs to be accurate for the return to be accepted.
- Organize your financial documents.
- Research tax laws.
- Know your deductions.
- Double-check your work.
Following these strategies can help make tax season less scary and more manageable. Start out by collecting all of your financial documents and researching the latest tax laws. Knowing your deductions and double-checking your work can also make a world of difference when it comes to filing your taxes.
7. Demystifying the Tax Filing Process: Moving Forward
Taxes can feel intimidating and the filing process can feel like a daunting task. However, with the right preparation and understanding of the process, filing taxes will become an easy endeavor. Here are a few tips to demystify the process and ensure you stay on track.
- Gather Documents – The first step is to gather all pertinent documents, including documents from employers, banks and investment firms, charities, and others that can be used as evidence of income and deductions.
- Grab an Organizer – Documents can become overwhelming, so consider using an organizer to stay on top of files and ensure that all documents are captured.
- Analyze Your Return – Carefully review all the documents to assess the tax items to determine which deductions and credits apply to you.
Armed with this information, you are now ready to submit your taxes. The government has made filing taxes easier than ever, with online platforms like their free filing service which allows taxpayers to file their taxes. Additionally, for some taxpayers, filing by mail is a feasible option.
Finally, most individuals qualify for simple filing options and can benefit from free filing software. These software programs guide users through the entire filing process and provide tips on maximizing deductions and credits. For best results, taxpayers should utilize these guides to identify deductions and credits applicable to them.
Now that you know when to submit your taxes, it’s time to start preparing for the upcoming filing season. Put together the necessary documents, take advantage of deductions, and remember the deadlines. With some careful planning, you can reduce any potential stress and make tax season a breeze.